News • 09.10.2020

On-premise ghost kitchens at Kroger

Retailer and ClusterTruck to provide customers with on-demand meal ordering

A pick-up point for meals in a grocery store
Source: The Kroger Co.

The Kroger Co. announced the launch of two on-premise kitchens, respectively at stores in Metro Indianapolis, IN and Metro Columbus, OH. Developed in partnership with ClusterTruck, a technology start-up that operates delivery-only restaurants, the kitchens will provide a variety of freshly prepared meals on-demand with no service or delivery fees.

Kroger and ClusterTruck's on-premise kitchens were developed from the momentum and insights of an informative pilot launched in December 2019 in Carmel and Indianapolis, Indiana and Columbus, Ohio. Different from the off-premise concept, the new concept will repurpose approximately 1,000 square feet at each participating store to create a culinary space for ClusterTruck staff to prepare meals for quick delivery and in-store pickup. Customers can order from a menu of more than 80 meals, spanning a variety of ingredients – and best characterized as food quality you can get at a sit-down restaurant with the personality of street food.

"The new on-premise kitchen, in partnership with ClusterTruck, is an innovation that streamlines ordering, preparation and delivery, supporting Kroger as we meet the sustained customer demand for quick, fresh restaurant-quality meals, especially as we navigate an unprecedented health crisis that has affected every aspect of our lives, including mealtime," said Dan De La Rosa, Kroger's group vice president of fresh merchandising.

A pick-up point for meals, customer accepting a bag from a sales person...
Source: The Kroger Co.

The expansion of Kroger's relationship with ClusterTruck reflects the retailer's ongoing investments in providing a variety of prepared fresh food options and creating a seamless experience for customers. Kroger experienced a 127% digital sales lift in second quarter 2020, as customers continued to use digital ordering options, including pickup, delivery, and ship to home.

Indianapolis-based ClusterTruck is a pioneer in the ghost kitchen space, building a proprietary software system that creates custom algorithms to optimize kitchen and delivery operations and removes the pain points of the third-party delivery model. ClusterTruck's systematic approach to meal delivery allows the company to ensure all orders are delivered to the customer within just 7 minutes of preparation — and on average, less than 30 minutes of ordering.

Source: The Kroger Co.

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